Air Products and Chemicals (APD)
NYSE:APD
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Air Products and Chemicals
(NYSE:APD)
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Rating:63Neutral
Price Target:
$322.00
â–²(10.35% Upside)
Action:ReiteratedDate:04/30/26
The score is primarily limited by weaker recent profitability and higher leverage despite solid operating cash generation. Technicals are a meaningful support given the strong uptrend and positive momentum indicators, while valuation is fair with a supportive dividend. The latest earnings call was broadly constructive on guidance and margins, but meaningful project execution and helium-related headwinds temper the outlook.
Positive Factors
Long-term, contracted on-site supply model
Air Products' core model of building, owning and operating customer on-site gas plants under multi-year take-or-pay or volume contracts creates stable, predictable cash flows and high customer switching costs. This durability supports long-term revenue visibility and underpins capital recovery on large projects.
Negative Factors
Volatile profitability and weak margins
Despite strong top-line growth, negative EBIT and net margins over the trailing period show earnings volatility and margin compression. Persistent margin weakness hampers return on capital and restrains the company's ability to convert revenue growth into durable profit and shareholder value.
Read all positive and negative factors
Positive Factors
Negative Factors
Long-term, contracted on-site supply model
Air Products' core model of building, owning and operating customer on-site gas plants under multi-year take-or-pay or volume contracts creates stable, predictable cash flows and high customer switching costs. This durability supports long-term revenue visibility and underpins capital recovery on large projects.
Read all positive factors
Air Products and Chemicals (APD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$67.35B
Dividend Yield2.92%
Average Volume (3M)1.28M
Price to Earnings (P/E)20.3
Beta (1Y)0.71
Revenue Growth1.44%
EPS Growth-108.69%
CountryUS
Employees21,850
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)3.20
Shares Outstanding222,656,000
10 Day Avg. Volume1,058,301
30 Day Avg. Volume1,279,648
Financial Highlights & Ratios
PEG Ratio1.40
Price to Book (P/B)4.04
Price to Sales (P/S)5.05
P/FCF Ratio-16.14
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue6.78
Enterprise Value/Gross Profit28.16
Enterprise Value/Ebitda21.20
Forecast
1Y Price Target
$318.57Price Target Upside9.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)13.13
Revenue Forecast (FY)$12.66B
Air Products and Chemicals Business Overview & Revenue Model
Company Description
Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, equipment, and services worldwide. The company produces atmospheric gases, including oxygen, nitrogen, and argon; process gases, such as hydrogen, helium, ca...
How the Company Makes Money
APD primarily makes money by selling industrial gases and related supply solutions under a mix of long-term contracts and shorter-cycle distribution sales. A major revenue stream is on-site gas supply, where APD builds, owns, and operates faciliti...
Air Products and Chemicals Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyAir Products and Chemicals Earnings Call Summary
Earnings Call Date:Jan 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and financial trajectory: the company delivered double-digit adjusted operating income growth, a 10% EPS increase that beat guidance, margin expansion, continued cash returns to shareholders and active steps to optimize large projects and reduce CapEx. At the same time, several material headwinds and execution risks remain — most notably helium-related pressure, equipment cost overruns, Europe cost inflation, and uncertainty and capital-cost risk around major clean-energy/ammonia projects (including regulatory risk tied to CBAM). Management emphasized capital discipline, project de-risking and partnership formation to mitigate these risks.Positive Updates
Improved Profitability and EPS Growth
Adjusted operating income increased 12% year-over-year; adjusted EPS was $3.16, up 10% YoY and exceeded the top end of guidance; operating margin expanded to 24.4% (up ~140 basis points).
Negative Updates
Helium Headwinds
Helium-related weakness remains a material headwind: prior-year one-time helium sale (~$0.10 EPS benefit in prior year) weighed on comps; company expects helium to be roughly a -4% EPS effect for the year and global helium pricing was cited as ~1% negative in the quarter (Asia most impacted).
Read all updates
Q1-2026 Updates
Positive
Negative
Improved Profitability and EPS Growth
Adjusted operating income increased 12% year-over-year; adjusted EPS was $3.16, up 10% YoY and exceeded the top end of guidance; operating margin expanded to 24.4% (up ~140 basis points).
Read all positive updates
Company Guidance
Air Products affirmed full‑year adjusted EPS guidance of $12.85–$13.15 (midpoint ~$13.00), which management said implies roughly 7%–9% improvement at the midpoint, and gave Q2 EPS guidance of $2.95–$3.10 (a 10%–15% YoY increase) while noting Q2 will be lower sequentially due to seasonality (Lunar New Year) and higher planned maintenance; Q1 EPS was $3.16 (up 10% YoY and above guidance), adjusted operating income rose 12%, operating margin was 24.4%, return on capital was 11%, net debt/EBITDA is 2.2x, management expects a ~4% EPS headwind from helium for the year, capital expenditures are guided to about $4.0 billion in FY‑2026 with a targeted ~$1.0 billion reduction and a heavy CapEx period through early 2027 before declines, and the company returned nearly $400 million to shareholders while increasing the dividend for the 44th consecutive year.Air Products and Chemicals Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
52
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.46B | 12.04B | 12.10B | 12.60B | 12.70B | 10.32B |
| Gross Profit | 3.00B | 3.78B | 3.93B | 3.77B | 3.36B | 3.14B |
| EBITDA | 3.98B | 1.34B | 6.49B | 4.42B | 4.22B | 3.97B |
| Net Income | 2.11B | -394.50M | 3.83B | 2.30B | 2.26B | 2.10B |
Balance Sheet | ||||||
| Total Assets | 41.64B | 41.06B | 39.57B | 32.00B | 27.19B | 26.86B |
| Cash, Cash Equivalents and Short-Term Investments | 951.00M | 1.86B | 2.98B | 1.95B | 3.30B | 5.80B |
| Total Debt | 18.17B | 18.41B | 15.01B | 11.03B | 8.33B | 8.22B |
| Total Liabilities | 23.49B | 23.71B | 20.90B | 16.34B | 13.49B | 12.77B |
| Stockholders Equity | 18.15B | 15.02B | 17.04B | 14.31B | 13.14B | 13.54B |
Cash Flow | ||||||
| Free Cash Flow | 1.11B | -3.77B | -3.15B | -1.42B | 303.70M | 877.70M |
| Operating Cash Flow | 4.12B | 3.26B | 3.65B | 3.21B | 3.23B | 3.34B |
| Investing Cash Flow | -5.07B | -6.58B | -4.92B | -5.68B | -3.86B | -2.73B |
| Financing Cash Flow | 379.00M | 2.21B | 2.62B | 1.37B | -1.00B | -1.56B |
Air Products and Chemicals Technical Analysis
Positive
291.81
Price Trends
284.45
Positive
268.93
Positive
270.70
Positive
Market Momentum
4.11
Positive
53.15
Neutral
67.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APD, the sentiment is Positive. The current price of 291.81 is above the 20-day moving average (MA) of 291.56, above the 50-day MA of 284.45, and above the 200-day MA of 270.70, indicating a bullish trend. The MACD of 4.11 indicates Positive momentum. The RSI at 53.15 is Neutral, neither overbought nor oversold. The STOCH value of 67.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APD.
Air Products and Chemicals Risk Analysis
Air Products and Chemicals disclosed 19 risk factors in its most recent earnings report. Air Products and Chemicals reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Air Products and Chemicals Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $233.88B | 28.82 | 18.10% | 1.41% | 2.97% | 7.08% | |
70 Outperform | $72.47B | 43.35 | 21.70% | 1.01% | 2.16% | -1.41% | |
68 Neutral | $78.39B | 36.82 | 58.23% | 0.98% | 3.90% | -1.60% | |
65 Neutral | $23.43B | 15.65 | 33.60% | 2.71% | -3.94% | 18.25% | |
63 Neutral | $67.35B | 20.29 | -2.20% | 2.92% | 1.44% | -108.69% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | $18.29B | -21.54 | -3.77% | 1.74% | -10.48% | -211.17% |
* Basic Materials Sector Average
APD
Air Products and Chemicals
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.